KUALA LUMPUR (Feb 4): ACE Market-bound Sabah-based steel product manufacturer Colform Group Bhd said on Tuesday it will continue to pursue diversification of product offerings to maintain profitability after posting RM14.52 million in net profit in the nine months ended Sept 30, 2024 (FY2024).

According to a bourse filing on Tuesday, revenue in the nine-month period was RM76.97 million, led by the manufacturing of downstream steel products and steel coils (56.88%); trading of steel products and building materials (29.38%); and provision of installation and construction project management services (13.74%).

There are no comparative figures for the preceding corresponding quarter as no interim financial report was prepared for the comparative quarter concerned, said the group, whose shares are scheduled for listing on Feb 10.

However, the latest nine-month period profit of RM14.52 million nearly doubled the RM7.46 million recorded in the eight months ended Aug 31, 2023.

Colform's initial public offering of 36 sen per share values the group at RM216 million upon listing, based on an enlarged share base of 600 million shares. This represents a historical price-to-earnings ratio of 11.16 times, based on the annualised 9MFY2024 net profit.

The group is raising RM41.19 million to set up a colour coil coating production line, a storage facility and to expand its footprint into Peninsular Malaysia.

For the three months ended Sept 30, 2024 (3QFY2024), Colform’s net profit came in at RM4.34 million while revenue for the quarter was RM30.49 million.

Colformp maintains its integrated business process within the value chain of the steel industry, starting from in-house steel processing activities and manufacturing operations to producing downstream steel products and onwards sales to customers, the bourse filing said.

This is complemented by the trading business which enables the group to supply a wide range of downstream steel products and building materials to meet the diverse needs of the construction industry.

Apart from that, the group also offers comprehensive and tailored solutions for customers through project management services covering design, supply and installation as well as civil engineering for building construction.

"The construction, infrastructure and property development industry in Malaysia is expected to stabilise and grow moving forward, driven by infrastructure development, economic growth and continuous government initiatives, which may lead to the increasing demand for downstream steel products in the future. Therefore, the outlook of the downstream steel industry remains favourable in the medium to long term," it said.

"Looking ahead, the group will continue to pursue business expansion and growth opportunities as well as diversification of product offerings to enhance its sustainability and profitability in a competitive market," it added.